Contributing extra 1% a year could double pension fund

The research shows a 25 year-old with pension contributions at 10% of salary could expect a pension worth 42% of final salary on retirement at 65. Increasing contributions by just 1% a year for five years could give the same person a pension worth 62% of final salary. Barrie & Hibbert also suggests few savers would opt out if such increases were automatic. Philip Mowbray, head of retail financial planning at Barrie & Hibbert, says: “Experiments in the US show that if contributions are automatically increased, at a gradual rate, people will not jump ship, and can expect a significantly b...